Jetstar introduces new carry-on baggage fees and size restrictions from 2027

Consensus Summary

Jetstar has announced a major overhaul of its carry-on baggage policy, effective February 2, 2027, that will charge passengers up to $52 one-way to use overhead lockers, depending on the route. The budget airline will eliminate its current two-item allowance—one overhead and one underseat bag—and instead permit only a single free underseat bag (40 × 30 × 20 cm) per passenger. Overhead bags will be restricted to 56 × 36 × 23 cm and require a fee, with prices starting at $25 for domestic flights like Launceston to Sydney and rising to $52 for international routes such as Cairns to Tokyo. Existing bookings before February 2, 2027, will remain unchanged, and Jetstar has framed the shift as a way to reduce boarding delays and improve on-time departures, citing frustration from passengers and crew over weighed bags and overcrowded overhead lockers.

The policy change reflects a broader industry trend toward 'unbundling,' where airlines charge separately for services once included in the base fare, such as baggage, seat selection, and meals. Jetstar’s move aligns it with European low-cost carriers like Ryanair, easyJet, and Wizz Air, which also impose fees for overhead baggage. The airline argues that the new model will streamline boarding by eliminating routine weigh-ins at the gate and encouraging passengers to travel with smaller bags, thereby reducing congestion. However, consumer advocates and analysts have criticized the changes as a deliberate strategy to increase revenue, particularly for travelers who previously relied on free carry-on allowances. Jetstar’s CEO, Stephanie Tully, has emphasized that the adjustments are designed to 'make better use of overhead locker space' and help flights depart on time, though the airline has faced criticism for its historically poor punctuality, ranking last among Australian carriers in June 2026 with a 75% on-time departure rate.

Key figures in the debate include Jetstar’s CEO, Stephanie Tully, who has defended the changes as a necessary evolution to improve efficiency, and consumer advocates like Andy Kelly of Choice, who have labeled the fees a 'cash grab.' Kelly highlighted existing ancillary charges, such as $20 for seat selection and $50 for cancellation rights, to argue that Jetstar is obscuring the true cost of travel. The Guardian also quoted Graeme Hughes, a consumer expert, who noted that airlines now advertise low base fares while burying additional fees deeper in the booking process, making price comparisons difficult. Meanwhile, the Sydney Morning Herald went further, suggesting Jetstar could introduce additional user-pays options, such as fees for reclining seats, priority disembarking, or even charges for babies sitting on laps, framing the airline’s approach as an opportunity to monetize nearly every aspect of the flying experience.

While most outlets agree on the core details—such as the fee structure, size restrictions, and implementation date—there are differences in emphasis. The Guardian and SMH focus heavily on the financial implications and consumer backlash, with the Guardian noting that fees could exceed $100 for some international trips and comparing Jetstar’s model to other airlines like WestJet, which charges for seat reclining. ABC, however, places more weight on the operational benefits, such as reduced boarding delays, and includes a cost analysis for families, estimating that a round-trip flight for four between Cairns and Tokyo could add $416 in fees. The SMH also stands out by advocating for even more aggressive fee structures, such as charging passengers to avoid waiting in aisles or to ensure faster takeoffs, a perspective not echoed by other sources. Additionally, the Guardian highlights the EU’s recent mandate requiring airlines to display inclusive carry-on luggage prices upfront, a regulation Jetstar will not face but which underscores the growing scrutiny of such practices.

The unresolved question is whether Jetstar’s new policy will succeed in its stated goals of improving boarding efficiency and on-time departures, or if it will instead alienate budget-conscious travelers who have grown accustomed to the airline’s low base fares. Consumer groups like Choice have already signaled frustration, warning that passengers will struggle to compare total costs across airlines due to the hidden fees. Jetstar’s parent company, Qantas, has historically relied on Jetstar’s ancillary revenue—such as checked baggage and seat selection—to boost profitability, and the new carry-on fees are likely to contribute further to this model. As the February 2027 deadline approaches, travelers will need to carefully assess whether the savings from lower base fares are outweighed by the additional costs of overhead baggage, particularly for those planning multi-city trips or family travel. The policy also raises broader questions about the future of budget flying in Australia, where Jetstar operates as the dominant low-cost carrier with limited competition.